Online Arbitration Services: An Effective Method of Alternative Dispute Resolution

Online Arbitration Services: An Effective Method of Alternative Dispute Resolution

Arbitration is a cost-effective alternative to litigation in commercial disputes. In many cases, arbitration is preferred in transactions where financial compensation of a large amount is sought. One of the best benefits of arbitration is that both parties to the disagreement can provide certain kinds of evidence that may otherwise be omitted during a trial. The arbitrator acts as a fair and impartial third party who listens to both sides of the dispute. After reviewing the evidence and testimony, the arbitrator applies the appropriate law and renders a final decision. The arbitrator must provide an analysis of the decision and how the evidence was factored in.

Mandatory Arbitration
Arbitration may be required depending the terms to a contract that the parties have previously agreed upon. Also, the court may order a case into arbitration to settle the dispute. If there is no mandatory arbitration, the parties may agree to voluntary arbitration as the best choice in a commercial dispute.

Damage Claims
When claims for damages are sought during arbitration, the parties have opportunities to present their theories on whether or not compensation should be awarded and defenses to specific claims. Each party may offer testimony from experts regarding the calculation of damages. Evidence that is relevant to the dispute may be presented to prove damages, such as:

• Images, diagrams and drawings
Medical documents
• Video footage
• Expert testimony
• Witness testimony

Determining Damages in Arbitration
When calculating damages, an arbitrator evaluates the theories presented by both parties and determines whether compensation should be awarded. The arbitrator must disclose the legal basis for his or her findings and the factors used to calculate damages.

The mitigation of damages rule may be applied when a party has a right to recover damages, but the party could have reasonably minimized or avoided the breach. The arbitrator will evaluate the facts to determine whether the party failed to mitigate the damages and factor it into the decision.

Getting an online arbitration service allows commercial parties to resolve their disagreements in a private procedure. Each party will have access to email accounts to present their arguments, conduct discovery and provide documents as evidence. When both parties agree to arbitration services, it helps them save on unnecessary costs and time as opposed to going through lengthy litigation procedures. An arbitrator decides on the most fair decision considering the arguments from both sides of the dispute.

Categories: Business

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